The Reserve Bank of India has asked Banks to offer basic services to customers from all branches, and not just home branches. Banks have also been asked to cut service charges levied by them and maintain uniformity.
Currently, many services are not provided by branches if it is not a home branch of a customer. In an age where there has been so much progress on the technology front, the regulator is baffled that a customer has to go to the home branch for certain services. The Reserve Bank of India (RBI) now wants to identify services that should be mandatorily offered by all the branches to every customer.
Generally, Banks provide only limited services to customers of other branches such as RTGS/NEFT of other branch customers can be done upto Rs.1 lac in some branches. This is done generally to avoid frauds. The home branch of a customer has all details such as KYC and others. For example – suppose the signature of a customer does not tally, then the home branch can verify the records via physical documents already maintained in branch. This would not be possible in other branches.
One more issue will be of staff shortage. If customers of other branches will visit to non-home branches, then it will lead to more work pressure on staff and banks will have to rethink their strategy.
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